The Swiss watchmaker Vacheron Constantin, based in the watchmaking industry’s capital, Geneva, was founded in 1755 by Jean-Marc Vacheron and continued its development ever since. Vacheron Constantin produced and distributed high-end watches for luxury-attached customers. Their vocation was to offer unique, sentimental watches, designed by master-watchmakers and in the famous Swiss tradition of watchmaking. The firm attached the highest importance to the satisfaction of its customers on both aesthetics and precision, with a price-range which started in 2017 around fifteen thousand dollars and went up to several millions. Since its creation, the company was called a monument of the watchmaking industry and this led the Richemont Group to acquire the company, which was established in more than 400 points of sale scattered in 80 countries, in 1996. In 2017, Vacheron Constantin offered six different collections, after more than 250 years of activity. This research case discusses the implementation of Vacheron Constantin in the competitive watchmaking industry in Switzerland and in the world through (a) a large heritage of technical know-how, recognized worldwide for its extreme precision, (b) a 250-year old relationship with its customer-base and a loyalty developed through the particularities of the brand and (c) several innovations in sustainability for the firm that justified its reputation as one of the best watchmakers of history.

Developments on the Chinese automotive market could change the business in the race to the crown for German premium brands. With extraordinary growth rates, car manu-facturers prioritized Asian market development. More concrete, a quickly evolving segment of young, wealthy Chinese customers demanding German luxury cars seems to be a chance to compensate maturing home markets. BMW – originated in premium segments – is about to expand its luxury reach through its 7-series while, at the same time, serving the increasing demand for “affordable luxury” in all markets. However, competitors are catching up with new concepts. Whereas Mercedes-Benz always had a great proportion in the luxury segment, Audi became the market leader in China by launching several new luxury models. BMW sees the answer in the possible launch of a new 9-series sharing a platform with their Rolls-Royce cars. Furthermore, the BMW Individual manufactory launched a new, strictly limited 7-Series in corporation with silver manufacturer Robbe & Berking – the most expensive and exclusive car BMW ever crafted. To be able to win the race, BMW has to incorporate new technologies when considering the trading-up or trading-down of their model range.

Purpose: Brand and line extension represents an essential vehicle for growth and is currently one of the most applied marketing strategies within the luxury sector. Though it has its advantages, there are several risks associated with pursuing such a strategy. Consequently, this paper attempts to understand the reasons for brand and line extensions as a way of growth in the new era of luxury expansion. Theory: The study extends the literature of brand and line extensions through an empirical study. Methodology: An integrative model of key success factors behind brand and line extensions is proposed by combining current research with empirical findings obtained through an explorative and qualitative research design based on primary data from eight semi-structured interviews with managers from luxury brands. Findings and Contribution: We identify five key success factors: (1) add value through originality, (2) stay at the level of the brand regarding price, quality, style and image, (3) create relevance to core business and be aligned with DNA, (4) stick to the vision of the founder and (5) assure consistency in brand identity and image. Sig-nificantly, the predominant themes are alignment between the parent brand and the extension and the extension in itself, which resonates with the existing research on the field. Further, drawing on the notion of alignment, this thesis also finds evidence of the importance of consistent brand cues such as storytelling, values, heritage, tradition and visual icons. Practical implications: It is suggested that the five success factors identified in the empirical data to the greatest extent possible should apply to any future brand extension and that resources should be allocated to reinforce the alignment between extension and parent brand. Research limitations: It would be insightful to conduct additional interviews with top managers from other brands to further elaborate on the identified success factors.